I recently moved from New Jersey to Massachusetts in 2007 to join a practice. On my part-year resident Massachusetts income tax return, it prompts me to declare ALL of my interest income for that year, which is actually taxed at a higher rate than wages. Certainly they mean only that portion that was earned while I actually lived in Mass., right? Especially since I will have to declare similar amounts for the time I was in New Jersey on their state income tax return. I believe that I shouldn't be taxed twice.

Zip Code: 02492

As a part-year resident of Mass, you're only taxed on the interest and dividends earned during your period of residency. Any interest and dividends earned while you were a resindent of New Jersey should be reported on line 6 of Schedule B of the Mass Form 1, which will be subtracted from your total interest and dividends earned during the year.

I hope this helps you out.

Zip Code: cpa@mdtaxes.com

Thanks for the info - I knew there was a way to split it up.

On another note, which state should I claim a moving expense deduction from?

Zip Code: 02492

Generally, I claim the moving expenses on the state tax return to where you move to. So I'm assuming you pay for the cost of the move subsequent to the date your state of residency changes to the new state.

Zip Code: 0181